Enbridge, Spectra Merger Gets Green Light

The U.S. Federal Trade Commission has cleared the previously announced proposed merger between Enbridge Inc. and Spectra Energy Corp.

As part of the clearance, the FTC today voted to accept a proposed consent decree in which Enbridge and Spectra Energy have agreed, following the closing of their proposed combination, to enact firewalls governing the flow of certain information to Enbridge about the Discovery offshore Gulf of Mexico natural gas pipeline system, and to take certain other steps limiting Enbridge’s potential influence over actions related to Discovery.

Spectra Energy holds an ownership interest in Discovery through its indirect ownership interest in DCP Midstream, LP, which holds a 40 percent ownership interest in the system. Enbridge, through an affiliate, also has offshore natural gas gathering operations in the Gulf of Mexico. The FTC’s decision is accessible via the following link: https://www.ftc.gov/enforcement/cases-proceedings/161-0215/enbridge-spectra-energy.

With this clearance from the FTC, the final regulatory requirement for closing is clearance under the Canadian Competition Act. The companies continue to expect the transaction to close in the first quarter of this year.

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